v3.25.3
Commitments and Contingencies
9 Months Ended
Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
(14) Commitments and Contingencies
Litigation
The Company is involved in various legal proceedings. The Company establishes reserves for specific legal proceedings when the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. The Company does not believe that there is a reasonable possibility of material loss or loss in excess of the amount that the Company has accrued. The Company recognizes legal fees related to any ongoing legal proceeding as incurred.
The Company is currently involved in a legal dispute with a former Chief Executive Officer ("CEO") and a former Chairman of the Company. The parties filed suit in November of 2024 in Colorado State Court. The former officers have made claims asserting a continuing right to a purported lifetime Founders’ Travel Benefit, for which they are seeking unspecified damages. The Company disputes the claims and has asserted counterclaims against the former officers. Litigation is currently ongoing and in the discovery phase.
The Company is currently engaged in a legal dispute with a former President and member of the Board of Directors. The individual was terminated from his position as President in April 2025 and concurrently removed from the Board. Following the departure, a dispute arose concerning the interpretation and enforcement of his employment agreement and severance entitlements. In August 2025, the former officer initiated arbitration proceedings against the Company, alleging breach of his employment agreement. The matter remains in the early stages of arbitration.
On February 16, 2023, a class action lawsuit was filed in the U.S. District Court for the District of Colorado (the “Court”) captioned Keith Koch, Individually and on behalf of all others similarly situated v. Inspirato Incorporated, Brent Handler, and R. Webster Neighbor, with Ilan Bouzaglo later appointed as the lead and named plaintiff. On September 29, 2025, the Court granted the defendants’ motion to dismiss and entered judgment in the Company’s favor, dismissing the case with prejudice. As no appeal was filed within the 30-day period provided under the Federal Rules of Appellate Procedure, the dismissal is now final.
Financial Guarantees
The Company is a party to financial guarantee requirements with third parties for real estate and payment processor agreements. The guarantees are satisfied through $30.0 million in surety bonds and restricted cash. The surety bond agreements remain in effect and their term is continuous. The surety has the right to terminate the bonds upon 180 days notice. The Company has the right to terminate the bonds upon termination and satisfaction of the agreement that the bonds secure. As of September 30, 2025 and December 31, 2024, the Company had $13.1 million and $13.2 million, respectively, in restricted cash within the Condensed Consolidated Balance Sheets.